Securities and Exchange Commission Historical Society The Virtual Museum and Archive of the History of Financial Regulation 2009 Annual Report celebrating 10 years 1999–2009 2009 Annual Report The 2009 Annual Report includes the finan- FROM THE PRESIDENT cial statement of and list of donors to the Se- curities and Exchange Commission Historical Society from January 1 through December 31, The following is excerpted from remarks given by James W. Barratt at the June 25, 2009. Highlights of 2009, published earlier 2009 celebration dinner honoring the SEC’s 75th anniversary. in 2010, includes the narrative section of the Annual Report. Carla L. Rosati, CFRE, Editor t the 1974 dinner honoring the SEC’s 40th anniversary, there were poster Donald Norwood Design, Design and boards and some memorabilia of the history of the SEC to date on display. Publication A Photos by Scavone Photography and from the In his remarks at that dinner, SEC Chairman Ray Garrett stated, “It would be far virtual museum and archive at www.sechis- torical.org. more satisfying if we could have with us some of the wonderful people that built Securities and Exchange Commission this agency and on whose legacy we thrive. For many of us, that is what we are Historical Society The Securities and Exchange Commission really remembering and dreaming of. But we must do the best we can. When Historical Society, through its virtual museum your history lies mostly in the minds and memories of men or in somber legal and archive at www.sechistorical.org, shares, preserves and advances knowledge of the documents, we lack the ready means for displaying what we have done.” history of financial regulation. The Society is a 501(c)(3) non-profit organization, inde- Tonight, we too are remembering and honoring the remarkable men and pendent of the U.S. Securities and Exchange women that have built and continue to sustain the SEC. Fortunately for us, Commission, and receives no funding from the public sector. Chairman Garrett’s dream of remembering and honoring these people has be- Board of Trustees come a reality. With the click of a mouse, everyone can see, hear and experience Abigail Arms Margaret A. Bancroft the history of the SEC and of the financial regulatory system. James W. Barratt, President W. Scott Bayless, Treasurer The SEC Historical Society’s virtual museum and archive is the unique fulfill- Andrew S. Carron ment of Ray Garrett’s desire. At this moment, people from around the nation Stacy P. Chittick, Vice President Susan S. Coffey, President-Elect and the world are in the museum, reading the words, seeing the images and lis- Robert H. Colson David A. DeMuro tening to the voices of people from all parts of the financial regulatory spectrum. Carrie E. Dwyer This is a museum of and for all of us. Anne C. Flannery Cynthia A. Glassman My fellow trustees and I are grateful to the many individuals who have do- Angela C. Goelzer John J. Huber nated their time and talent to help build the museum collection. We also want Teresa E. Iannaconi Robert J. Kueppers to thank those of you who give the funds needed for the museum’s development Carmen J. Lawrence and outreach. We are touched by those of you who have remembered colleagues Simon M. Lorne Matthew J. Mallow and friends no longer with us through the museum. David B. H. Martin, Chairman George C. McKann As you may know, this year not only marks the 75th anniversary of the SEC, Donna M. Nagy, Vice President but also the 10th anniversary of the founding of the SEC Historical Society. With Richard B. Nesson, Secretary Mark S. Radke your support and the dedication of our leaders and staff, we have grown from the John M. Ramsay Thomas L. Riesenberg vision of our founders to become a highly successful organization. We are proud Quinton F. Seamons Richard H. Walker of what we have accomplished during the past decade and we look forward to Harry J. Weiss many more to come. Administration Carla L. Rosati, CFRE, Executive Director Matnita Green, Office Manager-Bookkeeper 1101 Pennsylvania Avenue NW ON THE COVER : “Bingham Presents: New World of Financial Regulation,” held on Suite 600 Washington, D.C. 20004 September 24, 2009 in New York City, and sponsored by Bingham McCutchen LLP, 202-756-5015 with Joseph Stiglitz, Columbia University; Roberta Karmel, Brooklyn Law School; 202-756-5014 (fax) Jesse Eisinger, ProPublica; and moderator Professor Theresa Gabaldon, The Visit the virtual museum and George Washington University Law School. Carla Rosati, SEC Historical Society archive at www.sechistorical.org. Executive Director, is reflected in the glass. Management’s Overview of the Year The Securities and Exchange Commission Historical Society is committed to fiscal responsibility in using the gifts and grants entrusted to us in fulfillment of our mission to share, preserve and advance knowledge of the history of financial regulation. The following overview is to provide donors with information on how contributions were used during the January 1 – December 31, 2009 fiscal year. 2009 Revenue tively. As of December 31, 2009, the accumulated capital The Society achieved a balance of revenue sources dur- expenses incurred in building the virtual museum and ing 2009, with approximately 1/3 of revenue derived archive totaled $811,976. These capital expenses are solely from each of the following: unrestricted individual gifts, cost-based and are not reflective of fair value. unrestricted grants from corporations and foundations, and gifts and grants restricted for the virtual museum and Impact of SEC 75th Anniversary Commemoration archive. In contrast, in 2008, unrestricted grants from The Society concluded its commemoration of the 75th an- corporations and foundations represented 49% of fund- niversary of the U.S. Securities and Exchange Commission ing; 36% of funding came from unrestricted individual with the June 25, 2009 celebration dinner, having coor- gifts; while only 15% of funds came from restricted gifts dinated a series of educational programs and celebratory and grants for the virtual museum and archive. events for the commemoration beginning in November 2007. The educational programs were funded through the Growth of Restricted Giving virtual museum and archive. The celebratory events were The Society more than doubled gifts and grants restricted funded through grants and sales of tables and tickets for for the virtual museum and archive in 2009 over 2008 the June 25th dinner. The dinner was not conducted as a restricted support. The Society secured sponsorships for fundraiser for the Society. Table and ticket sales were not “In the Midst of Revolution: The SEC, 1973-1981” Gallery considered charitable contributions to the Society. and for Programs. The statement on Museum Building The Society concluded the celebratory events at a break- and Sponsorship (www.sechistorical.org/museum/spon- even financial position. Table and ticket sales did not sor) outlines the limits of sponsorships, and the Society’s impact revenue during 2009. Some table and ticket buyers continued commitment to the objectivity and authenticity who had not before contributed to the Society became of the virtual museum and archive. donors in the latter half of 2009, particularly as sponsors of the 2009 Gallery. Capitalization of Museum Collection The Society continued to capitalize all funds used to build Investments the collection of the virtual museum and archive in 2009. Upon completion of the Society’s commemoration of These funds included fees to academic curators for the the SEC’s 75th anniversary, and satisfaction of the fund- 2009 and 2010 Galleries and expansion of the Timeline; ing obligations with respect to commemoration events, scanning and transcription of Papers; scanning of Photos; the Investment Committee – comprising the President, broadcast, digitization and transcription of Programs; and Chairman and Treasurer – began meeting on a regular interview, digitization and transcription of Oral Histories. basis in fall 2009 to optimize the balancing of operating For the years ended December 31, 2009 and 2008, these cash requirements, cash reserves and investment options capital expenses totaled $172,536 and $132,415 respec- consistent with the Society’s investment policy. 2009 ANNUAL REPORT • SECURITIES AND EXCHANGE COMMISSION HISTORICAL SOCIETY • PAGE 1 Independent Auditors’ Report Financial Statements To the Board of Trustees Securities and Exchange Securities And Exchange Commission Commission Historical Society Washington, D.C. Historical Society We have audited the accompanying For The Year Ended December 31, 2009 statement of financial position of the Securities and Exchange Commission Historical Society (the Society) as of December 31, 2009, and the related Statement of Financial Position statements of activities and change as of December 31, 2009 with summarized financial information for 2008 in net assets, functional expenses ASSETS 2009 2008 and cash flows for the year then CURRENT ASSETS ended. These financial statements Cash and cash equivalents, including $664,418, which is Board are the responsibility of the Society’s designated, at December 31, 2009 (Note 9) $ 997,074 $ 756,054 management. Our responsibility is to Investments (Notes 2, 9, 10 and 11) 315,101 628,980 express an opinion on these financial Grants and contributions receivable (Note 7) 66,900 — statements based on our audit. The Prepaid expenses 11,199 86,965 prior year summarized comparative information has been derived from the Total current assets 1,390,274 1,471,999 Society’s 2008 financial statements, OTHER ASSETS and, in our report dated March 18, Virtual museum collection (Note 7) 811,976 639,440 2009, we expressed an unqualified Donated artwork (Note 5) 25,000 25,000 opinion on those statements. Security deposit 7,000 7,000 We conducted our audit in ac- Grants and contributions receivable, net of current (Note 6) 22,500 — cordance with auditing standards generally accepted in the United States Total other assets 866,476 671,440 of America.